Using the Information Given Here, What Are the Earnings Per

question 105

Multiple Choice

Using the information given here, what are the earnings per share for DEF Company?
• Earnings = $180,000
• Number of shares outstanding = 60,000
• Price per share = $30
• Book value per share = $10

• A) $1.00
• B) $2.00
• C) $3.00
• D) $5.00
• E) $6.00

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Definitions:

Price Elasticity

A gauge of the extent to which the demand for a certain item is affected by fluctuations in its cost.

Electricity Consumption

The total amount of electric power used by consumers within a specific period.

Perfectly Elastic

Describing a situation where the quantity demanded or supplied responds infinitely or by an unlimited amount to a change in price.

Horizontal Line

A straight line on a graph that runs parallel to the x-axis, indicating a constant value.